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tv   Markets Now  FOX Business  March 7, 2013 1:00pm-3:00pm EST

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dennis: i am dennis kneale. lori: i am lori rothman. flipping ahead of the all important jobs report. dennis: spring cleaning at facebook. we are live at the social media giant headquarters has facebook unveils its new look. lori: president obama steps up. the hopes reuniting talks i installed budget deal. dennis: how to break out of the office grind. we have had some well researched tips on how to stay health happe job. lori: time to check in with nicole celebrating a major milestone with 25,000 hits today.
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nicole: up one third of 1%. all three major averages have hit, record highs for a certain extent, nasdaq and s&p multiyear highs, all-time record intraday highs. they felt their lowest level in more than a month in the week, so that is some good news. productivity and labor cost basically shows americans are working long hours, but extremely productive. take a look at names of the dow jones industrials actually hitting multiyear highs, names including pfizer, johnson & johnson, boeing, jpmorgan. the highest levels since before the recession hit, so jpmorgan getting a nice one bounce back. back to you.
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dennis: thank you, nicole. oil prices back above $91 at the highest levels in a month. phil flynn with the price futures group at the pits of the cme, a big day for natural gas? phil: it is. i was lucky enough to hit the number right on the head. 146. that doesn't happen very often, so i was very lucky. but that was a much smaller withdrawal than expected. causing a jump in the natural gas prices. basically because it was a lot colder in certain areas than a lot of people thought especially out east. the other story today, look at oil and the price of gasoline, they are going in different directions, that is really, really good news. that is a sign we will see gasoline prices continue to fall. a lot of that happens to do with the reversal of the brent
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spread. they should fall at your pump, and that is good news. back to you. dennis: phil flynn, thank you very much. oil had been very weak, i don't know what oi why oil wants to r. why does it keep going down? phil: i think it is a little bit technical. prices have fallen pretty significantly in a short amount of time. $97 per barrel, concerned about outages and what is happening in europe, now we are back down technically we are down and the market has to balance record supplies with anticipation of demand beginning to pick up in the short term. the refineries are going to start kicking into high gear in a couple of weeks so we are having that balance versus supply. what we expect it will be in a week from now. dennis: thank you very much, phil flynn.
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lori: more people are working, more demand on gasoline, more good news for the u.s. job market. fewer people than expected file for first-time unexpecte unempl. pushing down to a five-year low. this coming after yesterday's ap report showing the private sector added 188,000 jobs last month, more than expected. that da data let my first guesto say he's more optimistic for tomorrow's february unemployment report. senior u.s. economist for deutsche bank. >> hi, how are you? lori: i'm doing great. what yowhy do you think we are g modest improvement in job creation? >> i think the economy, the private sector is gradually accelerating and as was highlighted earlier in the program, productivity as far as it can go and so we have seen this rollover productivity growth which means now it is
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business to further expand output they cannot lengthen ours anymore. this is a new paradigm for the economy, and it will be a major theme in 2013. lori: so your advice is to drill down on these figures, productivity of business workers fell 1.9% in the fourth quarter of last year instead of 2% decline. it sounds like a modest decline really, but you say this is actually a rollover? what else gives you that indication? >> the broader trend shows a huge collapse, and a lot of the viewers are thinking productivity has collapsed, that is bad for the economy and over the long run, yes, that is true, but this is a cyclical development, so he could see more hiring going forward. it sounds like a bad thing, but actually at this party economic
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cycle, does just what the doctor ordered. lori: now working your analysis of the adp private sector better than expected. moving the average dust levels in a couple of years so what does this portend for tomorrow? will it be a highlight generator? >> absolutely. looking at the report card, i will give it a b+ at this point. the adp report looks solid, both the service sector and manufacturing look decent, jobs plentiful in the consumer confidence, so a number of labor theories are telling us the labor market is holding up. the three-month average on payroll about 200,000 per month so we're looking for 180,000 tomorrow, that is a little bit below that average for the
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reason for that is we think that blizzard that impacted the northeast at the beginning of the survey may have depressed the numbers slightly. lori: the dow in record territory right now, more signs of an improving economic picture. there's a school of thought that things are better economy may actually be a risk to the stock market if you believe the main reason stocks are rallying is the federal reserve and monetary policy. what are you thinking on that front? >> the fed is only part of the story. it is not purely driven by the fed. yes, they are playing an important role, but the prospect of the unemployment rate declining further, meaningful income growth beyond what taxes have eaten up and inflation has eaten up, this means there is a very lasting and durable economic cycle in place that has
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significantly further room to run and that is really what the stocks are replacing. there is a very real improvement in the economy from consumers to the housing sector, business investment, i think that is what stocks are focusing on. lori: everybody has to love your optimistic outlook. carl, we will check back in with you. thanks as always. dennis: that was good to hear. one of the people who have said it is not all fed. lori: a lot of people are not celebrating the rally because unemployment is so high. dennis: a lot of individual investors missed out on this rally, but i if they have room o go. is a deadline near? president obama meeting with congressman from both sides of the aisle. peter. peter: the president continuing this charm offensive. he's having lunch with congressman paul ryan who will
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be announcing the house republican budget in the next few days expect it to be very tight trying to get the balance without any tax increases, also joining him as the top democrat, this meeting coming up to the president met with 12 republican senators last night for dinner to talk about the budget and other issues. there could be a window of opportunity here perhaps maybe for the two sides to try to get back to the table to hammer out a grand bargain on the budget to get more deficit-reduction in place here, and let's take a listen to one of the senators at that dinner last night. >> i don't think we're going to have a grand bargain over the next month or weeks, but the purpose was to lay the foundation over the next four or five months. the number one issue on the
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fiscal issues still unaddressed and hopefully this will lay the foundation for real solutions so we can put it in the rearview mirror. >> one other senator from nebraska said in a statement afterwards as an avid golfer, the president was one of the most important parts of the swing is the follow-through. the same holds true here as well. dennis, back to you. dennis: thank you, peter barnes. and coming up later this hour, we have lou dobbs joining us with his take on president obama's meetings for the budget. and we will talk time warner. no timeout at time warner after years of indecision spinning off the magazine business at the heart of the media titan in epic takeover battle two long decades ago. things like "people," "times,"
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"sports illustrated." it is a bitter day for what was once the world's largest media company. time warner struggled for decades to right itself in the acquisition of america online at the height of the dotcom bubble, it sold off warner music, cable systems, that stock 200% since then it got rid of a well, the lesalittle less successful, nowo big questions. profits less than half of what they were pre-meltdown. some say it may even become an attractive takeover target for amazon, apple or even netflix because nowadays pure content. lori: "time" magazine. they are american icons. dennis: very sad. lori: a new man behind the wheel at navistar as it chooses a new
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ceo. carl icahn even approved. dennis: should banks and investors fear the stress test? weighing in on what we should expect from the fed is latest report. lori: oil up better on economic news. gold is trading a little bit lower. silver a similar story. but copper is holding out today. we are back after this. suddenly, she does something unexpected
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who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. dennis: facebook is unveiling its new look with mark zuckerberg just left the stage of describing the latest newsfeed look at mobile inspired with richer content featuring larger and more prominent pictures. i'm looking to see if he wore a hoodie or not. i cannot tell. lori: how do you feel about the change? dennis: he did wear a hoodie. anytime you change it, you are messing with it.
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microsoft got clobbered for that. lori: i was reading on one of my science links, 1867, this day alexander graham bell won a patent for the first telephone. what if we had never changed from that technology, look at how far we have come. let's be flexible and give it a shot. dennis: nice note. one of the reasons she is now done 25,000 hits or so on the floor of the new york stock exchange, let's check the market with nicole petallides. nicole: we have covered the rise, the fall, and now the all-time highs we are seeing today. a lot of movers including a couple we will take a look at right now looking at navistar and hot topic. navistar actually brought in an interim ceo since august and the recent ceo was fired, and today naming the real deal chief executive officer, troy clarke,
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former general motors executive and he will be taking over this company. which came out with some numbers that has improved since the interim ceo took over. also, hot topic, jumping and being taken private. a 30% premium from yesterday's close and still surprised to see the stock up 29% in the change. there is a look at hot topic obviously jumping on this big news. lori: dennis is doing math on how many hits you have done, more than any of us put together. congratulations again. it is time to make money with charles payne. he is talking professional pay force. charles: you guys had us earlier talking about the adp report and we have the big one tomorrow.
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this is a staffing play, but a specialty. looking at for the most part they do technology jobs, financial jobs, and the business is really starting to turn really nicely coming up with earnings all the margins went higher. interestingly enough technology tip a little bit but the market was higher. they are extraordinarily confident but remember this is the sweet spot in jobs, they are high-paying talk about the jobs all the time, science, technology, engineering and math. there are lots of cheese. dennis: are they placing permanent longtime hiring? >charles: they do both. the better thing is the margins are starting to lighten up here little bit, getting a little bit better. there is demand coming on. this is one of these names on
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the cusp of a major breakout. look at what the job numbers because those jobs where they get paid a lot of money. ironically enough they are government jobs, the margins on them when from 34% to 29%. i guess they like people in the federal jobs as well. lori: we shall see what the stock performance sets about tomorrow. charles: absolutely. lori: good to see you. dennis: more talk, but where is the action? president obama's new push to reach across party lines. lori: lou dobbs on if it will work. ♪ aw this is tragic man, investors just like you
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>> 22 minutes past the hour, this is your fox news minute. u.s. officials have captured usama bin laden's son-in-law in
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jordan and brought him to new york. peter king i: they captured significant victory for the u.s. against al qaeda. he was a spokesman for al qaeda and a part of the 9/11 plot against america. susan rice says north korea will achieve nothing. following to launch a nuclear attack against the u.s. hours before the u.n. security council voted unanimously to oppose sanctions against north korea. and the last of the 115 cardinal electors that will vote for the next pontiff. after four days of meetings they have not set a date for the conclave to elect a new pope. those are your headlines, back now to lori and dennis. lori: thank you so much, we appreciate the update. according to members of congress, the president sitting down to lunch with the top leaders, republicans paul ryan
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and others. scheduling meetings with house republicans on wednesday, this after the president posted a dozen senators for a dinner at an exclusive d.c. restaurant last night and from what i understand picked up the tab. all this in hopes of reuniting talks i brought a budget deal. will it work? time now for their jobs. great to see you. this is a good extension, he is reaching out, taking some advice from his staff. lou: any departure from what he has been doing since he was reelected would be a positive thing and i think that is the case here. his dinner last night with a dozen senators, he picked up the tab. what it will lead to, i don't know. i get nervous when i start hearing this baloney start from background sources at the white house or from the various staff to the senators saying we
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are looking for a big deal here. the president wants a grand bargain here. when you hear that, everyone who hears it should be worried because this president is not a sudden spiritual convert, this man is trying to drive home two things simultaneously. ideology meaning higher taxes, minimum change in entitlement and secondly a strategy driving the 2014th congressional elections. and anything other than that, if those 12 senators are not skeptical, if they don't start driving the congress in a direction strategically, they will have a helluva time come november 2014. dennis: this rather rare outreach for the president to
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senate republicans, he didn't go to the main negotiating republicans, he went elsewhere, if it tried to come together or is he trying to divide republicans and get people to abandon the leadership of the republican party? lou: as far as we know he did not seek john boehner's permission. as he sits down watching i am sure our broadcast here, he did not seek permission for that dinner last night. graciously saying he doesn't find one way or the other and encourages him to do more of it. probably will take him at his word, but if republicans don't start-- in the field of politics we have karl rove basically hawking their wares of a bush candidacy at the time there should be a little toned down on the political rhetoric particularly fine for attention
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as the leaders of the republican party. if they don't understand, recognize and react to the fact that chuck connell and john boehner are the leader of the party right now, there will be a division and great problems, bigger problems. lori: let's bring brenda paulin, does he help re-energize even though this is a separate discussion outside of the budget? dennis: to the degree he energized those republicans and democrats concerned about civil rights in this country. civil rights is a republican issue. it is a great issue for this senator, i don't know if he has presidential aspirations, but for rand paul to stand up and do what he did in the senate was great stuff. it was not simple political theater, and was theater with a purpose and for that i commend
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him greatly. lori: yesterday we were talking about the scheduled interview with rand paul, what happened with that? lou: he had said he was scheduled to be with us, anyway right after he got through speaking and we tentatively scheduled it around a window of 6:15. he said he would talk until he couldn't talk anymore. who knew he could talk for 12 hours. i actually thought he might go around 3:00, 4:00 in the afternoon. senators are a whole different feel. of course the house doesn't have the opportunity to filibuster. i thought he was terrific, great the way marco rubio, all of the other stuck in to help him along
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for questions and giving them an opportunity not to wear a catheter. he considered that over 12 hours you understand the doctors good thinking. lori: thank you for sharing that with us. so of course you can see lou dobbs with us everyday and each night, tonight talk about taxes, the economy and the attempt to reach out to republicans. dennis: and you can't take your eyes off of the dow after closing all time high the past two days. we are back at the nyse next. lori: u.s. regulators reason most in-depth analysis now on boeing troubled dreamliner. the latest ahead. dennis: plus, putting thanks to the test.
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look at financials ahead of the fed latest stress test results. . .. [ indistinct shouting ]
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ dennis: time for stocks now. let's head to the floor of the new york stock exchange where our own nicole petallides, the ironman of correspondents, nicole. >> thank you. you're a superhero yourself. we have past the boot of jpmorgan, and citigroup. on a day we're setting new records obviously with the dow jones industrials. the nasdaq and s&p 500 also hitting intraday multiyear
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highs, not all-time highs like on the dow. some of the best performers include jpmorgan, bank of america as well as boeing which we've seen at 81.05. obviously big news there as well. on a day where the bulls still have the ball. back to you. >> thanks very much, nicole. lori: the national transportation safety board issuing a new report on its investigation into battery fires aboard boeing 787 dreamliners. rich edson in washington with details. rich. >> the inquiry drags on. the national transportation safety board said two months after it began its investigation officials are searching for a the cause of a battery fire over a 787 in boston. they were investigating how the battery was certified in the first place as well. ntsb investigation into the probable cause of the 787 battery fire at logan is continuing. the nstb is also continuing to review the design, certification and manufacturing process for
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the 787 lithium-ion battery system. boeing's response? the release of the has transportation safety board interim report is a positive step towards completing the investigation of the january event in boston. we worked tirelessly with the help of the n. tsb to help understand the event and will continue to do so. they are proposing battery fixes and test flights. yesterday "the wall street journal" reported that transportation secretary ray lahood made it very clear he wants a very thorough review and he will can a lot of questions before making a final decision whether to allow the planes back up in the air. the process continues. lori: no closer to what happened? >> right. or when they will get back in the air, yeah. lori: unream. rich, thanks as always. dennis: the fed is set to release the results of its latest stress tests on the banks. my next guest says, be not afraid. we have todd from stern ag who joins me.
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what will happen at 4:30 and when do we find out all the results? >> this is basically a two-step process this year which is a very different process from years past and continues to evolve. we're getting fed model under a stress scenario if you will for all 18 of the banks. basically it is one stress scenario. how do the banks stack up against each other under a number of various financial metrics. it is precursor to the big day a week from now when we'll really find out what are the capital distributions going to be, what are the dividend distributions going to be. tonight is the precursor, whet investor's appetite so to speak. dennis: let's zoom in on the weakest player that might be citi. what are you looking at for citi from the test results? >> we're positive on citi, bank of america for that matter, i think we're finally at a point with improving credit quality, improving profitability. these companies are in the position to start returning
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capital to shareholders. we believe that citigroup in particular will get announce both a share buyback as well as dividend increase which will be very encouraging, very positive news for investors. dennis: would make us think they're no longer having a near-death experience at citi. where do we stand? 19 biggest banks took tarp. paid back every dollar plus interest, are they allowed to raise dividend payments and do buybacks as they wanted or do they have to first go hat in hand to get permission from the oversears at the fed who have never been bankers? >> the process is driven by the fed. it is completely different world today than it was a couple years ago. every single year the fed is going to have to sign off on what the proposed distributions are going to be. whether that's dividends. whether that's capital. this is now an annual program. what we're seeing tonight in fact is a function or derivative of the dodd-frank act. dennis: right. >> now you have two components. you have the dodd-frank, plus you have the fed's program. dennis: todd, doesn't this bother you in any way?
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jpmorgan chaae might be one of the strongest banks in the entire world, okay? even after they lost a couple billion on the whale trader. and yet they have got to go ask permission from the fed on what they do in paying back money that belongs to shareholders? there is something with that!. >> there is something wrong with that. and in fact my belief is three to four years from now you will see a very different process, meaning a process where we're not going through this annual, you know, gymnastics in terms of can you do it, can you not do it? it's very, it's a very onerous process as it relates to both the banks and it really keeps investors quite skiddish in terms of how do i invest in these things? when i'm not going to know year to year where these things are going to stand in terms of distribution, you know, my dividend and so forth. dennis: okay. two last really quick questions. first, these stress tests if they had been applied in '06, 07, would they have prevented the big meltdown? would they have spotted
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weaknesses. >> no. dennis: then why are we doing it? which of these banks if you had to guess has a downside risk here, could come up with a disappointing report that could send shares down, what would it be? >> the one bank i believe investors are very split and divided on right now is bank of america. dennis: ah. >> bank of america, as you know, has been struggling for a number of years. they failed the test a couple years ago. they have yet to kind of return meaningful level of capital to shareholders. very token dividend right now. they're the ones i believe are --. dennis: that is pressure point. nice job. thanks for bird doing that for us. todd hagerman. appreciate it. >> thank you. lori: we have breaking news here for you. we are getting more details on facebook's brand new news feed. a the limited roleout will begin today. nothing yet on the website. we'll have a full report just about ten minutes from now with our own robert gray. he joins us live from the event. charlie gasparino is here next as the dark pool volume grows. dennis: take a look at ten
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(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. but that doesn't mean i don't want to makeoney.vestor. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. >> i'm cheryl casone with your fox business brief. it is another bullish day on wall street with the blue
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chips it haddings an intraday high for the third straight session as jobless claims fell to a six-week low. right now the dow is up by 35 points, 14,331. the average rate on a 30-year mortgage ticking higher but still remains near its record low. according to freddie mac, 3.25%. the rate fell to an all-time low at 3.31% back in november last year. household wealth hitting a prerecession peak at the end of 2012 a hopeful sign for consumer spending. household wealth topped $66 trillion in the fourth quarter, its highest level since the fourth quarter of 2007. meanwhile household debt grew at its fastest pace since early 2008. that is the latest from the fox business network, giving you the power to prosper.
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lori: it's official. the dreaded and evil dark pools are now beating the new york stock exchange in the war over trading volume. charlie gasparino has exclusive details. >> pretty interesting story. kind of stumbled upon it. dark pools as you know are those off exchange exchanges. they're run by big investment banks where they take trading volume and match buyers and sellers. they pull a lot of stuff, a lot of trading volume from the major exchanges. the controversy, none of this stuff is disclosed. it is done in hiding. when did this occur the last five years after rule nms you basically can have an exchange anywhere. i can create an exchange on my desk at fox business. that is essentially what is going on. three big changes, goldman sachs, barclays runs it, credit suisse runs one and goldman runs one. this is latest data coming from the people at new york stock exchange. they're saying the big board is now trailing all the dark bools in terms of average daily volume. that occurred in january. january $900 million, 900
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million shares have were traded on an average daily basis at the new york stock exchange. the 19 dark pools that are out there, including three big ones i mentioned, 920. when i asked the people at the exchange is this the first time, they believe this is the first time that combined the dark pools have beat the new york stock exchange. what does this mean? well, for average investors out there i can tell you this. if, if trading is occurring in this capacity off exchanges, if it's done in this lack of transparent way, because remember, goldman sachs is not publishing its prices of apple or whatever is being done over there. neither is credit suisse. neither is barclay, there is issue here on market structure. what is the value, what is the real price of apple? are you paying too much because it is over at the new york stock exchange? because it is less liquid than these other exchanges? big issue. it is unclear if regulators will take it up. i will tell you this, one of the first times duncan
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niederauer ho runs the new york stock exchange and bob greifeld runs nasdaq teamed up together and got along over something, they're bitter enemies over listings has been over dark pools where they saw mary schapiro the former sec chairwoman. now likely to be mary jo white the, the new chairwoman. it is unclear how white will deal with the dark pool structure issue. i will tell you this. duncan niederauer is planning some sort of major, sort of offensive, some sort of, he is basically looking at trying to figure out what to do next. they are planning another legislative attack, probably go to congress, go to the sec, go to the above to push this agenda. i will say this, guys, we could sit here to talk about insider trading all you want, talk about regulatory issues, whether jpmorgan should pay money, whether congress should investigate jpmorgan over the london whale trade one. oldest stories in the world, that does not affect really
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small investors like this. every day, someone buys a stock, they sell a stock. there should be some integrity in that trade. it is when you have five different exchanges and they're not disclosed and these other exchanges, these dark pools are playing on a different regulatory playing field. they're not really regulated by the sec there is not much disclosure, well then what is the price of a stock? dennis: when i'm a institution manager and i want to sell a million shares of ibm but don't want to sell it on the new york stock exchange because the price will plummet. everyone knows. i go to the dark pool. when the dark pool places sale of million shares is it doing entirely outside. nicecy or sends the trades into the nyse anyway? >> it depends. it depends whether they advantage tank justly match the buyer and seller. generally they do it themselves. there has been one money manager i know that was a board member of the, this, one prominent one, that was prominent board member of the new york stock exchange
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during the grasso years. his name was larry fincke. he runs largest money management firm blackrock. if anyone wants cheap trading, electronic trading wants to run a money management firm. doesn't want to go through the alleged specialist and human beings which are allegedly slower and leave you guys skimming a fraction of a penny here and there matching buyers and sellers of stock. larry fink was an advocate of the new york stock exchange because he worried more about goldman operating a dark pool and matching buyers and sellers themselves and not knowing what is going on than he did about the new york stock exchange. dennis: they have the new york city prices to compare. not will pay 30% more than the published price apple is trading at. >> what if you're paying more over here and less over here? no one knows the problem. lori: that is the problem. >> that is the problem. listen remember why they set up, this is reflective of rule nms. why did they do that?
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to have competing exchanges, competition creating the best market. the problem is, i'm a free market capitalist. it ain't happening here. it ain't happening. dennis: we have to split unfortunately. great discussion. let's pick it up very soon, charlie. >> all right. lori: time for stocks now. dennis: let's check the markets. nicole petallides on the floor of the new york stock exchange. crazy day for gap. >> that's right, dennis and lori, we were at the post earlier today when gap shares were actually halted shortly before 11:00 a.m. and that was because the same-store sales numbers which were due to be released after the bell, were released early and leaked on the internet. this is the first time the gap was going to try to release after the bell and it didn't do so successfully. that being said let's look at the shares right now, up 3 1/2%. that is because their same-store sales for the month of february came in up 3%, better than estimates of up 2%. when you break undo the gap, they have the gap, old navy and banana republic . old navy where they really saw the strength of same-store sales there
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jumping 6%. the gap did well, but banana republic was the weak link. back to you. dennis: thank you very much, nicole. lori: so facebook fending off chatter of user fatigue with the latest version of the news feed. we're live at facebook headquarters for the big unveiling next. dennis: plus how to break out of the office grind. we have some, shall we say well-researched tips how to stay happy on the job. ♪ .
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dennis: facebook giving itself a face-lift, announces some changes to its news feed feature. robert gray is live from the
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company's headquarters in menlo park, california with the details. robert sft. >> yeah, dennis, that's right. this is just ending right now. mark zuckerberg leading several executives on stage with the trademark gray hoodie talking about making a personalized newspaper. this is some of the most valuable real estate if you will in cyberspace, the news feed portion where most people spend majority of their time on facebook, giving it the overhaul you talked about. hasn't dranked drastically in 2006 when it first appeared. was given a slight tweak back in september 2011. widely expected there will be news feeds that will be individualized by different content. basically you have photos which make up about half of all activity on the niece feed doubling since 2011. follows up to 30% as well. those would be pages you follow. robert gray channel for fox business. music will have its own channel in there. it is a streamlined picture. we have video showing some
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of that of the a lot less clutter. tool bars are on the side to get you to different pages and around. it will be much more consistent, dennis. the mobile will look like the desktop. i asked mark zuckerberg in the q&a whether or not there would be more advertising and inventory available. he sort of dodged the question a little bit, perhaps overtime. he left the door open for that. dennis: that was a good question. no wonder he dodged it. thank you so much, robert gray. >> you're welcome. lori: well does your workday have you down, lowering your stress? well it is all in a day's work. number one, these are the well-researched tips. get up and move. bad office chair posture can make you more stress and uncomfortable. every hour take a quick walk if you have time. speed walk around the newsroom. and stop, put the blackberry down. not sleeping next to your work phone, may find you're more well-rested the next morning. that is a tough one.
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i don't know. perhaps maybe the most important, go to "happy hour" with your coworkers. ah yes, of course. having good relationships with colleagues has been linked to a longer life. we all need to unwind once in a while. dennis: apparently so is getting hammered been linked to a long life. all right, the folks at the fed could use a happy hour. the fed's newest stress test results hours away. former minnesota governor tim pawlenty weighs in what to expect. that is next with tracy byrnes and ashley webster. don't miss it. with the spark cash card
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points to the dow, so doing some heavy lifting itself. one week in the sequester, virginia governor bob mcdonnell said the spending cuts are costing his state billions of dollars and tens of thousands of jobs. he will tell you how virginia is coping straight ahead. tracy: pipelines clearing a major government hurdle. weeks ahead are critical to deciding its fate. transcanada ceo says he is still confident the obama white house will approve keystone. he is our special guest coming up. ashley: first, top of the hour. time for stocks now. let's go to nicole petallides on the floor of the news zai. you know how often we do it. every 15 minutes. nicole. >> we don't want to miss any market action on the fox business network. the dow jones is up 36 points. that is the gain of 1/4 of 1%. nasdaq and s&p each gaining .1 of 1% or thereabouts. both the nasdaq and s&p are
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actually hitting multiyear highs. the dow jones industrials are hitting all-time high today. the vix, the fear index, is taking a breather. the dow is up five days in the a row. the dollar is pulling back and oil and gold are higher and oil services has an up arrow. transports are pulling back some. all the dow theorists who have seen transports hitting record highs without all the other indices hit it, they have come together and hit those highs. there is a great look at our bar charts that show you how we have surpassed our highs we established back in 2007. and our market lows and here we are now, where we are again. this is the action we're seeing. the volume is at 356 million shares. boeing is a stellar performer on the dow. back to you. ashley: certainly is, accounting for half of today's gains. nicole, thanks so much. tracy: okay, so stocks getting a boost from word that fewer americans signed up for unemployment last week. jobless claims fell 7,000 to
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seasonally adjusted 340,000. that is the second straight weekly decline. it puts the four-week moving average at the lowest point since two thoin nine. eight, excuse me, --. also the commerce department reported that the u.s. trade gap with the rest of the world grew to more than $44 billion. that is jump of 16 1/2% from december. tomorrow's numbers will be interesting, right? ashley: very interesting pointing to perhaps some encouraging news. we'll wait and see. >> either way, right? good number market goes up. bad number market goes up because the printing press is printing. ashley: qe is in place. so either way. tracy: i think it could be a win-win. ashley: hopefully you're right. with the dow continuing to set new highs is it too late to buy into the rally? maybe not. my next guest doesn't think so. she says investors should average in now rather than waiting for a correction and buying on the dip. joining me, margie patel,
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senior portfolio manager with wells fargo with nearly 1 1/2 billion dollars under management. thank you for joining us. if the economic news to tracy's point is bad we know the fed will keep on printing. either way you look at it the markets continue to move higher. >> yes, that's right. i think that's well-put. i think the economy has momentum on itself and bernanke has made it very clear if for some reason there's a bump in the road concerning a financeal crisis here, in europe, something like that they're prepared to keep pumping out of the liquidity. any correction i think will be mild and fleeting and will provide the old-fashioned opportunity to jump in and really load the boat. ashley: you say you should, investors should average in. explain that. and, you know, what particular sectors should you average in that you like? >> yes. well, i think averaging in really, if you just said over the next few months i'll put a third, a third, a third whatever money i like to commit to the market.
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i think the sectors that are going to do well are those that have clear paths for growth. that could would be companies in the energy place relating to the shale gas revolution. i think they have many years of growth ahead of them. i think health care looks very, very good inspite of the health care law. big pharma can save a lot of money. they're on a new drug discovery cycle. there is lot of m&a activity that says there are a lot of takeovers that could be profitable. industrial companies, capital expenditures are moving up here and also in the developing markets. i think that will be a good sector too. ashley: one sector that is really underperformed is tech. so far but do you think it will catch up and do you like the tech sector? >> i'm personally underweight tech because i think a lot of the traditional growth areas really aren't going to be, have the kind of growth that we think because we have a lot of transition, move to the cloud and so forth. i think it is going to leave a lot of companies well behind on the kind of growth
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you would expect. i think they're more like industrial cyclicals and weaker links i think will be very disappointing. ashley: you know i should say the volumes have been a little mediocre which perhaps suggests a little bit of a lack of conviction. all the talk about the great rotation out of bonds into equities, there hasn't been a tremendous outflow fromm3 treasurys. there is still a lot of money hanging out there, isn't there? >> yes there is. and i think we see, for individuals, they are having much higher cash equivalent balances than you might think compared to history. and it really mirrors what you see for u.s. corporations. they also have a lot more cash on the books. i think it reflects the uncertainty that people have after the kind of volatility we've had over the last few years. so i think when we start to see money come into the equity market it will be out of those cash equivalents rather than bond funds. that is side there are a lot more legs to the market than we've seen so far this year. ashley: it comes down to
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earnings. companies are lean. their profit margins are pretty good and overall pretty healthy. could those earnings and that healthy situation continue, margie? >> yes, i think it can. i think we'll see companies maintain those historically high profit margins because they change the way they operate to be much more flexible, much more global in their businesses and also the cash flow just from existing assets is so high. he have they the power to increase their dividends, very substantially from current levels. ashley: very good indeed. margie patel as always. thank you for joining us. appreciate it. >> thanks. tracy: all right. they had a very public battle over the federal budget including during the presidential campaign and now president obama and former republican vp candidate paul ryan are actually meeting face-to-face over lunch. duck. ashley: no throwing. tracy: senior washington correspondent peter barnes is live from the white house with the details. peter, ashley definitely
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thought there would be a food fight. >> [laughter]. well we're, i don't know if we get a readout on the lunch as they say, but, you know, yes. "animal house"? who noise. -- knows. this lunch is expected to be wrapping up shortly. paul ryan is the chairman of the house budget committee, the republican chairman. he is about to announce the house republican budget in the next few days which is expected to be very lean, to try to get to a balance budget with no tax increases. paul ryan also joined by the top democrat on the house budget committee chris van hollen for this lunch and this continues, follows this meeting last night, extraordinary dinner the president had with 12 republican senators as part of his continuing charm offensive or outreach to republicans post the sequester, whatever you want to call it and the, some of the senators and the white house saying there might be a new opportunity, a window
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of opportunity to get some kind of a grand bargain to work toward that for tax reform and enlightment reform. the white house is saying there is still common ground they can work on. take a listen. >> the idea wasn't we were going to negotiate a deal last night that was never part of the plan and that isn't going to happen over one dinner but i think it was a constructive exchange. >> he believes when he hears top republicans say that they're interested in finding that common ground, that they believe it's possible to marry entitlement reforms that produce savings with tax reforms that produce savings and achieve that deficit reduction, he wants to have that conversation. that's what he is doing. >> the president will continue all this next week when he heads up to capitol hill for meeting not just with house and senate democrats but also with house and senate republicans. ashley? ashley: all sound so good,
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doesn't it, peter. the charm offensive, we'll see if it produces any results but it sound good. peter barnes, thank you so much. >> thank you. ashley: so much more ahead this hour. virginia bracing for a multibillion-dollar hit from government spending cuts. governor bob mcdonnell is our special guest ahead. tracy: opponents of the keystone pipeline extension are ramping up for their last chance to kill it. ceo russ girling is saying he is not worried and he joins us coming up. first a look how oil is trading, speaking of pipelines, up about a dollar. $91.41 a barrel. we'll be right back.
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with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. ashley: print the money. time to make green backs with charles payne. following up on gap. they had quite the morning with shares surging on good news, charles. >> talked about gap a couple
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weeks ago. before that, got to tell you guys, had to bite the bullet on pet smarts, you did? >> isn't that crazy. we know how many peach love the dogs. they had a great number but the guidance was absolutely atrocious. listen, a year from now, two years from now, the stock i am 1,000% confident. ashley: people still spend billions on the pets. >> right now i don't think it will come back anytime soon. i rather jettison it out and take a hit and move on something shorter term. for long term 401(k) i would not sell it. another stock i wouldn't sell is gap we talked about. they came out with february sales. guys, these guys are really firing on all cylinders. i think they're actually back. i was surprised banana republic was down same-store sales. that was interesting. tracy: this has to be old navy. >> old navy is one rocking. old navy is really rocking. tracy: dumfounded with this hit. fat joe's. >> exactly. tracy: ashley spends more money on his dog than
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anybody i know. i know lots of dog lovers. the gap. you can't walk in the gap. there is just nothing there. >> you haven't been there in a long time. ashley: right across the street. >> might have improved. ashley: it is. tracy: should give ited old college try? >> went in and bought two pair of jeans couple months ago. got a little better. my son wouldn't buy jeans. tracy: that's what i'm saying. >> still old school place to go but at least it is coming back. i love the way it is acting. will think it goes north of 40. thanks very much. tracy: fat joe need his medicine. >> always. tracy: quarter past the hour. time to check on nicole petallides on the floor of the stock exchange. hey, nicole. >> hey, tracy and ashley. we're taking a look at the market which continue its bullish run. talking to traders this morning i asked them, what do you think about the market? the dow is up four days in a row and helped along by boeing but their momentum player said, you got to stay with it. you can't short it.
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boeing is up 2.25% right now. hitting new annual highs for boeing. despite the fact that the ntsb into an investigation into the battery fire they still haven't come to a conclusion pertaining to that. that is nice one much year chart. you see the stock at 88 -- $80.87 a share. tracy: nicole petallides, we have to congratulate you, you celebrated that the 25,000 hit milestone. we're trying to calculate here. i said earlier i don't think i took 25,000 breaths. >> i don't know. it is a group effort. it is a crazy group effort since we launched this fox business network in 2007. we all worked really hard. it is really exciting. 25,000, and great number and gave me this beautiful badge. it has my name on it. ashley: that's cool. >> i don't know. i will try to go for another set of hits. tracy: 25,000 cups of coffee. i am going to do that one. >> appreciate it, very much. thank you. ashley: well-done, nicole. tracy: that will be my
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little "guinness book of world records". ashley: the new york pet at that lead december exchange has been renamed. tracy: should be. >> latest stress test due out in couple hours. financial services roundtable ceo and former minnesota governor tim pawlenty will tell us what to expect next. tracy: plus, is all the snow in the midwest finally putting a stop to the record drought? the u.s. got snow. east coast did not. at least d.c. and new york. look at jeff flock live in illinois on a farm with a preview. jeff? >> stuck in a snowbank and loving it. why? well the farmers love it. i will explain, the giant sucking sound you hear in the ag room at the cme when we come back. she knows you like no one else.
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>> at 20 minutes past the hour i'm patti ann browne with your fox news minute. u.s. am ambassador to the united nations susan rice says north korea's attack threats will achieve nothing. north korea vowed to launch a nuclear attack against the u.s. just hours before the
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u.n. security council voted unanimously to impose additional sanctions on north korea for its nuclear test last month. u.s. officials have captured usama bin laden's son-in-law in jordan and brought him to new york. republican congressman peter king is calling the capture a significant victory for the u.s. against al qaeda. king says he was a spokesman for bin laden and al qaeda and part of the 9/11 plot against america. a cardinal from vietnam has arrived at rome. he is the last of the 115 cardinal electors who will vote for the next pontiff. after four days of meetings, cardinals have still not set a date for the conclave to elect the new pope. those are the headlines. i'm patti ann browne. back to tracy. tracy: patti ann, thank you very much. >> thanks. tracy: the federal reserve is releasing the first round of its latest bank stress test results in two hours. joining us with his outlook on the tests and what they mean for big banks, former minnesota governor tim pawlenty, ceo and president
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of the financial services roundtable. governor, thanks for taking the time to be with us. we'll get the tests in two parts now. part one today is basically, can they survive an economic downturn? part two we get in a week determines whether or not they can issue a dividend and buybacks. today is an important test though, isn't it? >> it is an important test. while we don't know the results or the answer, we can maybe surmise given increasing strength and health from the banks we've seen from other measurements the results will be direction alley more positive than they have in the past. you made a distinction between the stress tests today that will be announced and approval of not of the banks capital distribution plans announced next week. the two things are related and connected but two different things an important to keep them in that frame. tracy: there is a lot of criticism you can society the parameters any way you want to have people pass them. last time of the 19 banks,
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four failed. citi, suntrust, allied and metlife. what are you expecting to hear this time? are you expecting everyone to kind of pass and system be happy again? >> well, keep in mind sometimes people confuse failure of the stress test with the capital plans or distribution plans being rejected. so, for example, last time there was at least one institution, maybe more that actually passed the stress tests per se, but had their capital distribution plan rejected and they were dubbed by the media having failed the stress test. keeping those two things somewhat separate but i do anticipate better result this is time because banks have all-time high according to the fdic equity levels and capital levels. there has an about significant improvements in the health and stress of banks as measured by other third parties. i hope and believe the results will be directionally positive. tracy: banks like citi and bank of america could use a positive result, right? they are arguably undervalued. it could be off to the races for the financial sector as a whole, which many argue
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how goes the financials goes the rest of the market and maybe we can put this recession talk behind us? >> it would be a nice development. of course the industry has been through a great deal of tumult over the last three to five years. obviously there were a lot of bad decisions and judgements leading up to that. it will be good for the economy and good for the country if we have stable and healthy financial institutions including these banks. by the way they can reearn their reputation by reearning trust. you don't it by talking about it. you have to go earn. i think we'll see that in the coming months and years. tracy: as ceo of the roundtable, what would you like to see out of the financial services sector going forward? >> just an appreciation. i jokingly like to say to people if you don't need a checkbook or savings account or a loan or a mortgage or a small business capitalization program, or life insurance or car insurance or an annuity or a 401(k) and the like, then our industry isn't very important. if you need any one of those things, by the way every american needs one of them almost every day. tracy: yes we do.
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>> that is an important industry. we want it to be healthy and trusted. our goal is to get it back on track and we think it is. tracy: governor, we certainly need the big banks. thank you, sir. >> thank you. ashley: the hot dry summer empty midwest sent grain prices soaring but the prolonged winter may help cool the prices down. our very own jeff flock on a farm life in mchenry, illinois, with the latest. jeff? >> it is the snow, ashley. it is about to snow right now and it translates into moisture which is taking money out of the grain market. i want to go to the maps. the drought monitor and after the drought monitor map, you see where the drought is you see woo where we've gotten the moisture, jill allen, senior analyst. this is great news. >> this is map we're looking at moisture projected coming in the over coming weekend. it will give us much-needed rain into the driest portion of the drought. >> what that has done, it
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create ad huge spread. look at price of corn right now, the old crop corn is high. not quite $7 the but still up there. the if you look december, coming up december corn which is next harvest much lower. >> much lower. about $1.50 lower. plain and simple holding the old crop up to the last year's drought and pressing new crop down due to the moisture coming in. >> before we get away who is pulling money out of the grain market? >> fund are putting it out of the grain market and putting it into the equity market. >> because equities are attractive. >> they're at attractive and making all-time highs. >> we have snow up to our knees does not guaranty the moisture will get into the ground and stop the drought. >> no, it's not. snow melts some will run off we'll need more into the springtime. summer will be the key. >> okay. equities now, not corn. i told you buy a corn a year ago. if you listened you're reich. if not, don't buy it now. ashley: you did tell us. jeff flock thank you so much
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from a snowy field in illinois. tracy: he is great. coming up weeks ahead are critical for deciding the fate of the keystone pipeline extension. transcanada ceo russ girling will tell us why the company is still confident next. ashley: first, let's take a look at some of today's winners and losers. the dow is up 27 points. let's look at the s&p and some of the winners there. we'll be right back. >> meet bill and melissa. like many, they built their financial house on stocks, bonds, and insurance... anthen saw it blow away with the first winds of economic change. when mary lost her husband, she invested in real estate. but when the housing bubble burst... so did her financial future. robert and rachel discovered the security, safety, and stability
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>> welcome back everybody. the dow hitting another record high. another day, another record. here's a look at the dow 30 chart for you. boeing helping to lift the dow today.
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on the down side is merck pharmaceuticals down a little bit. let's go to nicole petallides with more. nicole: we're taking a look at a market that obviously yet hit another all time record high for the dow jones industrial average. five days in a row. number one, where do you think we're going? do you think the momentum is still to the upside or is that about it? >> i don't see a lot of momentum in this market right now, only because the volumes are still pretty small. nicole: okay. >> but i think it is curious that the dow has hit all-time high before the s&p, but i do expect s&p to get back to its all-time high. nicole: that's big news if you think that. >> i think that's already baked in the cake. we will hit it in a couple of sessions. but then we'll pull back and re-evaluate. nicole: that's interesting. how do you think we actually got here? i mean, we know that there's been unemployment and it's been a tough go of it.
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but things have improved. how do you think we got to these highs? >> personally i think we got to the highs because of the fed liquidity, a lot of pushback by some fundamental guys, corporate earnings have been pretty well. you cannot deny the fact that this market has gone forward while the other markets have barely budged. nicole: we've got it. thank you. ashley: nicole, thank you very much. we will be back in 15 minutes. >> we are in the waiting period to see if the keystone pipeline is approved. a draft report that the state department put out said that the proposed 5.3 billion dollars pipeline wouldn't fuel a spike in gas emissions. how about that. that doesn't mean the environmentalists are going to quit this fight. let's bring in the company's president and ceo. russ, this report went out, and if i'm not mistaken, as of tomorrow, the public has 45 days to basically give their opinion of all this.
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you've got to believe the environmentalists are going to be all over this. >> oh, i suspect that they will continue to make the same comments they have made in the past, but it's been four and a half years and now 12,000 pages of a report. i can't think of any new information that's going to be raised over the coming 45 days that hasn't been raised already and been addressed in that 12,000 pages. >> then after that, the state department has 90 days to approve it. last time on day 79, they said huh-uh, no way, you're thinking this time, we're going to make it through the 90 days. >> i'm still confident. they haven't specified the time frame yet, whether it's 90 days or something shorter than that. i would argue that certainly could be shorter than that as you pointed out, 79 days had passed already. and you know, the key issues have been addressed that resulted in the delay. the environmental impact statement last week concluded that the pipeline itself can be
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built safely. it has no impact on the environment. it has no impact on the amount of refining that's going take place for the production. and therefore, has no impact on emissions as well. it just makes the movement of that oil from the supply to market more efficient and less risky. all of these issues that needed to be addressed have been addressed so i think that can be done in an expedited time frame. >> just to remind people, we're talking about the bottom half of the pipeline from oklahoma city down to -- basically to the gulf. so it is not a huge piece of pipeline. and i saw a quote recently that if you looked at the map of the united states, with all the pipelines on it, it looks like the veins in your grandmother's legs. there are so many pipelines there to begin with; right? this pipeline not only benefits the united states but really benefits canada as well, doesn't it? >> it does. and actually the portion from oklahoma through the gulf coast is actually under construction right now. about 55% complete.
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but really the portion through montana, south dakota, nebraska, that's all that's left in this keystone xl approval at the current time. it does benefit canada a great deal. i think there's a great trading relationship that's existed between our two countries for 145 years. energy has been a key component of that. i think that's one of the huge benefits to the united states of this project. canada has more oil than it needs, and the u.s. consumes more oil than it produces. that seems to me to be a very very good marriage. >> right, i think it is a point that's missed often is you do have an excess supply and you have no choice but to get it out there in order to get the price of this crude back up; right? so you are either going to sell it to us or you are probably going to end up selling it to china if we don't take it. >> absolutely i think the canadian government and the industry has made it a priority to diversify its markets. this is a very very important resource to canada, to north america, but also to the world. it is the third largest source of crude oil in the world. and probably the largest source of crude oil that's available
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for third parties to invest in. so the interest in this is great all over the globe. tracy: and the good news is that canada likes us. those other countries don't. russ, i hope you will come back if this is approved and we can throw confetti and have a little party. >> thank you very much. and we do like you very much. tracy: russ, transcanada president and ceo. he likes me, he really likes me. ashley: do not use that analogy of grandmother's legs again. tracy: it is a good one, isn't it? ashley: it paints the picture, but gerri was looking a little -- tracy: it is a good analogy. ashley: we get it. let's get to gerri. let's talk about pensions. gerri lewis joins us with more on this incredible story.
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>> i can't follow that. tracy: you are going to use it tonight, i know you are. you are going to run with it. >> that's the essence of journalism. ashley: highest compliment. >> yes, it is. now they are doing a five day conference in hawaii at a resort that is located on the widest part of the sand. it's a national conference. 1,000 people are going to be there. five pools. you know, you've got the water slidd. you know, you've got rooftop restaurants. the whole thing. now meantime, what do we know about public pension funds? well, they are under water; right? there's some 766 billion to 2.2 trillion that they have as unfunded liabilities out there. and i have to tell you, i can't believe they are going to do this. let me read to you what hank kim had to say -- this is a
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fellow -- wouldn't you rather be there today? ashley: it looks great. >> i could be out on that beach getting a tan but instead i -- i am working as these people. here's what this fellow had to say -- this fellow is missing the point. it's not about being at a pretty place. ashley: they couldn't cancel is what they are saying. >> they have to pay a half a million dollars to cancel. i almost think it is better to cancel it and do it by skype. skype is free. ashley: this was booked back in 06. >> all of these people do it this way, though. i mean that's not surprising.
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am i right? this isn't right. ashley: of course it is not right. >> it is crazy. ashley: what do you have coming up tonight? >> the federal government in its wisdom and as it cuts back is talking about getting rid of some of these airline towers at very small airports across the country. and so we're going to show you where those are, what's going to be impacted. will it make a big difference? the one take away i have already as we study is this these privately-managed air traffic control towers are cheaper than the ones run by the faa. ashley: go figure. >> so maybe instead of closing them down, maybe the entire system should be private. tracy: what do you know? ashley: thanks gerri, very much. don't miss the willis report tonight at 6:00 p.m. eastern time right here on fox business. tracy: all right. we have some breaking news for you now. oil closing up $1.13.
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now, $91.56 a barrel. basically rebounding from yesterday's loss. ashley: indeed it is. tracy: facebook is updating its status. we're live at the social media giant's headquarters with details. ashley: but first, take a look at the 10 and 30 year treasuries as we head to the break. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.
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fox business brief. according to the fed, household wealth topped 66 trillion dollars during the fourth quarter. its highest level since the fourth quarter of 2007. nokia ceo pay package has suffered some major static in 2012. according to regulatory filing his pay package dropped 45% as the mobile phone maker looked to trim costs and struggle to gain ground in the mobile device market. more than 47,000 cars and suvs have been recalled because the engines can start on their own, with the remote starters. the recall includes: >> that's the latest from the fox business network.
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tracy: recent breaking news, the associated press is reporting that new york yankee closer might actually retire after the 2013 season. he is 43. right handed pitcher signed my son's glove. he is a gentleman. ashley: a good guy. tracy: a good guy. ashley: an amazing pitcher too. tracy: yeah. ashley: all right a facelift for facebook. unveiling a new look for the site's news feed feature. robert gray live from the company's headquarters with all the details. robert? robert: hey, ashley. that's right. it is the first overhaul of the -- the biggest anyway for the news feed. most of people spend most of their time on facebook since it debuted. it's what facebook folks and some advertisers that i spoke with were hoping for, richer experience with larger posts, bigger pictures, hoping people will start spending more time on facebook. they have been spending less
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overall of late and creating what founder and ceo mark zuckerberg calls a personalized newspaper. >> news feed is one of the most important services that we build. it takes all the things that your friends are doing, and it puts them right in front of you, so you can see them in one place. now, because of the history of news feed, it's easy to think about it, as just a single stream of content, but our goal is actually a lot broader. what we're trying to do is give everyone in the world the best personalized newspaper we can. robert: and of course they will be dividing the content into different channels. you will have friends, music, photos all on different channels allowing for more advertising opportunities and investors seem to like the change. take a look at the stock. it is up better than 3% in today's session. back to you. tracy: i don't know if i like that. thanks, robert gray. ashley: thank you, robert. tracy: isn't the point of the news to introduce to me something i don't already know?
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ashley: thinking of making the tracy byrnes times. tracy: it could be boring. ashley: i don't think so. tracy: now let's get to nicole. nicole: we just keep on going because there's always a lot of news. thank you, tracy. appreciate it folks very much. i want to take a look at pandora and apple. two names that we focus on a lot. here's a look at pandora which has been struggling. $16 ipo today after the bell they will report their quarterly numbers. pandora is a winner year to date, up almost 30% year to date. they have over 125 million registered users for internet radio and the like. apple in the meantime is working hard on trying to do music streaming service but hasn't quite nailed that down yet, but obviously that will be in the cards as well. back to you. tracy: thanks nicole. see you at the top of the hour. ashley: virginia among the states hardest hit by automatic spending cuts. governor bob mcdonald will tell
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us how the commonwealth is feeling the impact next. tracy: first as we head out to break, the dow is up 25 points. let's take a look at some winners and losers on the nasdaq. facebook is up as robert gray reported. up 3%. we will be right back.
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tracy: for years speculation that time warner would get rid of its big magazine group. the day has finally come. a little too late we think, though. dennis neal has that and more. >> you know what? for time warner, you've got to ask what took you so long. five years after the internet began eating away at print media. time warner long last spinning off the time part. 117 print magazines at the heart of a media titan forging an epic
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takeover battle two decades ago. what once was the largest media entertainment company in the world. time warner has struggled for a decade after the disastrous acquisition of america online at the height of the dot com bubble. it spun off cable systems to great effect. that stock, time warner cable, up over 220% since that spin off. and got rid of aol with some success, up almost 60% in that time, aol stock is. but all along, time warner steadfastly refused to shed magazines. thanks to denial and maybe just plain loyalty. now, it is selling at the bottom. shedding magazines as if it were putting an elderly eskimo on an ice flow and shoving it out to sea. you have to wonder whether the print is better off going private and hiding from an unloving wall street. bigger question, what's left of the old time warner? some people say time warner itself could become an attractive takeover target. the media business is pulling in opposite directions.
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newscorp our parent spinning off "wall street journal" in print. cbs shedding billboards. comcast buying the rest of nbc universal from ge. time warner maybe three scenarios, a buyout chop shop, buy it, break it up, sell off pieces, it could merge maybe instead with a rival like a viacom let's say. here's a cool idea, maybe it gets bought as a big content shop by an inner looper, say an amazon or apple or even netflix. so stay tuned, dudes. tracy: all right, then. ashley: thank you, dude, thank you dennis. ashley: for more on a state's fiscal future, we are joined by the virginia governor bob mcdonald.
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governor, thank you for being here. of all the states that are vulnerable to the sequestration, virginia in particular with its home to so much of the defense industry, how has these automatic cuts impacted your state so far? >> well, thanks for having me on, ashley. i appreciate it. sequestration was meant to be a hammer, not a policy. people expected the last 18 months it would actually get solved and it hasn't. so the problem with it of course as you take the entitlement reform and cuts off the table, and you put half of the cuts on defense, it's just a really horrible policy. what it means is a trillion dollars with previous cuts, plus sequestration over ten years. it's a couple hundred thousand jobs in virginia, and frankly it hurts our kids in uniform in afghanistan and our readiness here in virginia. so it's bad news. we can already see some downturns in the defense contracting industry. and look, defense has got to take its share, but don't put
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half of it on defense. that's our problem. i think going forward in the next 45 days, we're expected to see a pretty significant number of furloughs of our dod civilian employees, so i think we will see more in about a month. ashley: so who is to blame for this mess? >> well, look what we do in richmond is we solve problems. we don't do what the president does in washington. i will say i think it was established it is the president's idea. he is the commander-in-chief. you have to be able to lead. governors can't make excuses. we have to get stuff done. working with divided legislat e legislatures like the president has, i had it for two years. you need to find ways to take on entitlement spending and lessen the cuts in defense. if the president is not willing to do that and now tries to interject tax increases when sequestration has always been about spending cuts, that's just not the right thing to do. ashley: governor, i wanted to mention you are overseeing this
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sweeping transportation plan, but conservatives, people of your own party, say you broke a pledge and raised taxes. how do you respond? >> well, the bill is coming to my desk. i did put transportation hard this session. i'm tired of us having our problems with job creation with infrastructure, with quality of life for families, nd i proposed a way of getting that done. the legislature made some changes to it. it does involve revenue increases in northern virginia and hampton road. statewide it is about 20 bucks per person. so listen, there's no easy ways to get america's infrastructure rebuilt. i've got the most congested part of the country in northern virginia. so we're making some tough decisions. not everybody may be happy with the method, but they will be happy that we're getting people back to work and out of traffic. you know, i look at what reagan did 30 years ago. he raised the gas tax 125%, and he said look i'm not going to let the infrastructure crumble. now, i'm no ronald reagan, but i do know that sometimes you've
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got to make tough decisions as governor and get things done and get problems solved, and that's what we're doing. ashley: we wish you the best of luck, virginia governor bob mcdonald. thank you very much for joining us. >> okay, thanks, ashley. tracy: kind of looks like reagan a little. liz claman takes us through the last hour of trading. she's talking to a compliance expert of columbia university. he's going to explain why the fed's stress test could lead to problems for the major banks and their shareholders. countdown to the closing bell is next.
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